Looking to save energy as well as money for the 2023 tax season? You’re in luck. When you make energy efficient upgrades, you can get more for your money. That’s because as a New England homeowner, you can take advantage of up to $3,200 in tax credits unde the Energy Efficient Home Improvements Tax Credit! And it’s all thanks to a new tax credit that is available now through the Inflation Reduction Act (IRA).
What is the Energy Efficient Home Improvements Tax Credit?
Did you make an upgrade to your home in 2023? There’s good news. For this tax year, you can use the Energy Efficient Tax Credit in your favor. Better yet, the bill was amended to increase the credit from a $500 lifetime credit to up to $3,200 through 2032. The products must be engineered to specifically save energy.
Some products have caps on how much credit you can get, including windows ($600) and doors ($250).
How Does the Energy Tax Credit Work?
Get credit for upgrading your home with energy efficient exterior products! You get to claim a tax credit for 30% of the material cost of qualifying home envelope improvements.
Qualifying home envelope improvements include . . .
Energy efficient replacement windows
How do you know if your windows are energy efficient? To get the most out of your energy-saving benefits, choose windows with:
- Best air infiltration ratings in the industry to minimize drafts (0.1 CFM)
- Insulated glass packages with argon and krypton
- “Low-E” glass coatings help block UV rays
- Triple weather stripping blocks air /creates a perfect fit for window opening
- Heavy-duty cam sweep locks hold sashes in place during violent weather
Save energy with door replacement
Did you recently install a new entry door that you adore? Great news. You can get a credit of up to $250 for your new door installation. Energy efficient doors are engineered in the following ways:
- Polyurethane Core greatly increases energy efficiency and decreases energy bills
- ComfortTechTM Warm Edge Glazing System measurably improves thermal performance
- High-Performance, Heat-Resistant Window Trim is warranted not to warp, crack or pull away from the door, even in sunny or higher temperature areas
- Energy-Efficient Q-Lon Weatherstripping runs along top and sides of the door and interlocks with Q-Lon corner seal for the most efficient seal you’ll find for keeping moisture, air and dirt out of your home
Unfortunately, these upgrades do not quality for the Energy Efficient Home Improvements Tax Credit
Even though these home improvement products save energy, they don’t quality for the tax credit. However, you can still enjoy the energy savings and beauty that these upgrades bring t your home!
Roofing–aspahlt or metal
Is your new roof energy efficient? Choose energy efficient roofing systems that include the following for maximized energy savings:
- Ridge and Soffit vents, protecting your home while allowing for ventilation
- Leak Barrier Protection, creating a seal that helps keep water out at the most vulnerable areas of your roof
- Synthetic Roof Deck Protection, offering a synthetic second layer of protection for your home while preventing roof rot
- Starter Strip Shingles, preventing shingle blow off up to 130 mph.
- Lifetime Shingles is made to protect your home with the best combination of weight and performance that modern technology can deliver
- Lifetime Ridge Cap Shingles to further prevent leaks
Vinyl siding installation
Looking to side your home with quality vinyl? You’re in luck. New siding replacement can help keep your home warm in the winter and cool in the summer. Here’s what to look for:
- High R-value with siding that’s up to 1 ½” thick
- Thick foam back vinyl siding Insulation reduces thermal bridging which reduces utility costs and provides a warm home
- Energy gap PROTECTION with RigidLock and TrueForm protects against energy loss
Don’t forget that James Hardie® fiber cement is energy efficient, too, especially when equipped with HardieWrap®. This waterproof barrier protects against the elements 365 days per year!
Have Questions About the Energy Efficient Home Improvements Tax Credit?
If you have questions or need clarifications, be sure to visit the official guidelines here at the IRS website. Meanwhile, be sure to contact us to learn more about our energy efficient uprgades and how you can get the most out of your new investment. Don’t forget that we have 0% APR financing available!
